Page 28 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability
Corporate Governance Policy
Financial Statements
Attachments
Procurement
The Company is committed to promoting sustainable procurement with policies that cover various aspects, including economic, social, environmental, and governance. This comprehensive procurement approach aims to enhance the collaborative supply chain management strategy, extending to our partners and business allies. It encourages the adoption and integration of these policies in their operations.
The Company’s procurement function has a broad scope, encompassing the sourcing of steel scrap, billets, raw materials, spare parts, and services, along with managing both inbound and outbound logistics. These operations focus on sustainability, value enhancement, and timely resource provision according to production, financial, and customer needs, supporting overall objectives and strategies and upholds a procurement framework that ensures fair and transparent treatment of all suppliers, regardless of business size, in alignment with principles of inclusivity and responsible sourcing.
The Company’s procurement strategies are aligned with the strategy of the Tata Steel Group, involving regular coordination and information sharing. This alignment helps the Company to manage various challenges and
risks and opportunities. In the past year, the Company has sourced 81% of its input requirements and services domestically through supplier development and cross- functional collaboration, enabling local vendors to meet required standards and aligning specifications to support feasible local alternatives reflecting its comprehensive procurement strategy.
Integrating technology into Procurement management
With rapid technological changes, the procurement function integrates essential technology into the Company’s procurement processes to enhance operational efficiency and competitive advantage. This
26 Tata Steel (Thailand) Public Company Limited